Why it matters: This reckoning has been coming for months as interest rates rise
Context: The office sector is vulnerable as many people still work from home.
What next: The writedown cycle may take several revaluation rounds to play out.
The sale of a half stake in Sydney’s tallest office building, the $2 billion Salesforce Tower overlooking Circular Quay, is on pause with bids about 10 per cent lower than hoped for, the latest evidence the surge in interest rates could wipe billions from Australia’s office sector.
Late on Friday ASX-listed Dexus, one of the country’s largest owner of office towers, added a crucial piece of evidence to the emerging picture that a major reset in values is under way.
Loading...
Nick Lenaghan edits the property section, which covers all aspects, from residential real estate and housing and construction to commercial property – office, retail, industrial – and major ASX-listed developers and real estate investment trusts. Connect with Nick on Twitter. Email Nick at nlenaghan@afr.com
